How sellers can mitigate issues with buyers making simultaneous offers.
Recently, I’ve noticed a new tactic that buyers are using. They’re making offers on multiple properties simultaneously. If you’re planning to or have already listed your home, this strategy could affect you.
One reason buyers are doing this is because they don’t want to lose out on a home, even if it might not be their favorite. If the property they really want shows up on the market, they just opt out of yours. That’s not the end of the world, but it’s not great because you lose all your marketing momentum when you have to go back on the market. Additionally, other buyers may think that something is wrong with the house and not look at it. Here are three ways to mitigate this issue:
1. Ask the buyer for a larger option fee. In this area, we’re used to $150 to $250 option fees. If you think this issue will come up, ask for $400 to $500. If the buyer closes, they get that credited back to them, so if a larger option fee is a problem for them, that may be a red flag.
“Right now, some buyers are making offers on several homes at once.”
2. Shorter option period. Instead of giving them a week, try to shorten the inspection period to five or even three days.
3. Negotiate a backup offer. Ask other buyers to be the backup during the option period, so if your original offer backs out, you have another one and can keep moving forward.
If you have any questions about real estate, please reach out by phone, text, or email. I would love to hear from you.
